{"id":108931,"date":"2017-07-13T08:42:02","date_gmt":"2017-07-13T12:42:02","guid":{"rendered":"http:\/\/countingpips.com\/?p=108931"},"modified":"2017-07-13T08:10:52","modified_gmt":"2017-07-13T12:10:52","slug":"yellens-dovish-testimony-supports-global-equities","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/07\/yellens-dovish-testimony-supports-global-equities\/","title":{"rendered":"Yellen\u2019s dovish testimony supports global equities"},"content":{"rendered":"
July 13, 2017<\/div>
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By IFCMarkets<\/a><\/p>\n

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Dow closes at record high<\/h2>\n<\/div>\n<\/div>\n

US stocks\u00a0<\/b>ended higher on Wednesday as Federal Reserve chair Janet Yellen emphasized central bank\u2019s gradual approach to normalizing monetary policy. The dollar was little changed: the\u00a0live dollar index<\/a>\u00a0data show the ICE US Dollar index, a measure of the dollar\u2019s strength against a basket of six rival currencies, inched up 0.01% to 95.768. The\u00a0S&P 500<\/a>\u00a0added 0.7% settling at 2443.25 lifted by gains in technology, real estate and materials stocks. All 11 main sectors finished higher. The\u00a0Dow Jones\u00a0<\/em>industrial average closed at a fresh record high 21532.14 adding 0.6%, led by DuPont, Microsoft and Home Depot shares.\u00a0Nasdaq\u00a0<\/em>rose 1.1% to 6261.17 for a fourth session of gains in a row.<\/p>\n

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Treasury yields inched lower after dovish testimony of Fed Chair Yellen. Yellen said \u201cthe evolution of the economy will warrant gradual increases in the federal funds rate over time to achieve and maintain maximum employment and stable price\u201d. She also noted the federal-funds rate \u201cwould not have to rise all that much further to get a neutral policy stance,\u201d the rate which will neither stimulate the economy to accelerate nor slow it down. Investors interpreted this as a hint that the tightening cycle would be shorter than anticipated. Market reaction to Fed\u2019s Beige Book was muted, which highlighted tight labor market saying a shortage of qualified workers has limited hiring and characterized US economic growth as \u201cslight to moderate\u201d.<\/p>\n<\/div>\n<\/div>\n

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European stocks rebound<\/h2>\n<\/div>\n<\/div>\n

European stock indices\u00a0<\/b>ended firmly higher on Wednesday led by retailer stocks. The\u00a0euro\u00a0<\/em>reversed previous session\u2019s gains against the dollar while\u00a0British Pound\u00a0<\/em>gained back previous session\u2019s loss. The Stoxx Europe 600 index jumped 1.5%. Germany\u2019s\u00a0DAX 30\u00a0<\/em>rose 1.5% to 12626.58. France\u2019s\u00a0CAC 40\u00a0<\/a>outperformed ending 1.6% higher and UK\u2019s\u00a0FTSE 100\u00a0<\/em>index gained 1.2% to 7416.93.<\/p>\n

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Expectations for better corporate earnings supported market sentiment. With the European second quarter results season just around the corner, corporate earnings are forecast to increase by over 9% percent from the same period in 2016, according to Thomson Reuters I\/B\/E\/S estimates.<\/p>\n<\/div>\n<\/div>\n

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Asian stocks rise on dovish Yellen comments<\/h2>\n<\/div>\n<\/div>\n

Asian stock indices<\/b>\u00a0are higher today as investors\u2019 risk appetite was buoyed by less hawkish comments f Fed chair Yellen and upbeat Chinese exports and imports data for June.\u00a0Nikkei\u00a0<\/em>ended 0.01% higher at 20099.81 as the dollar slipped against the yen. Chinese stocks are higher:\u00a0Shanghai Composite Index\u00a0<\/em>is 0.7% higher while Hong Kong\u2019s\u00a0Hang Seng Index\u00a0<\/em>is up 1%. Australia\u2019s All Ordinaries Index is 1.1% higher despite continued rise in Australian dollar against the greenback.<\/p>\n

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Oil slips on oversupply concerns<\/h2>\n<\/div>\n<\/div>\n

Oil futures prices\u00a0<\/b>are edging lower on renewed concerns about global glut. Prices rose yesterday after the US Energy Information Administration reported that domestic crude supplies dropped 7.6 million barrels last week. Inventories fell for a second week in a row. However EIA said US crude production edged up by 59,000 barrels a day to 9.397 million barrels a day last week. September Brent crude rose 0.5% to $47.74 a barrel on Wednesday on London\u2019s ICE Futures exchange.<\/p>\n

Market Analysis provided by IFCMarkets<\/a><\/p>

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Note:
\nThis overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or \u0430 recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.<\/p>\n","protected":false},"excerpt":{"rendered":"

By IFCMarkets Dow closes at record high US stocks\u00a0ended higher on Wednesday as Federal Reserve chair Janet Yellen emphasized central bank\u2019s gradual approach to normalizing monetary policy. The dollar was little changed: the\u00a0live dollar index\u00a0data show the ICE US Dollar index, a measure of the dollar\u2019s strength against a basket of six rival currencies, inched […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-108931","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/108931","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=108931"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/108931\/revisions"}],"predecessor-version":[{"id":108953,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/108931\/revisions\/108953"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=108931"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=108931"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=108931"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}